China Electric Vehicle Exports Down 10% Year-on-Year... Hybrid Up 190%

Impact of Additional EU Tariffs
Electric vehicle exports drop, hybrids surge
China’s car market sees government-driven growth

China's electric vehicle exports declined last year, while hybrid vehicle exports increased. This is attributed to the impact of the European Union (EU)'s additional tariffs on electric vehicles.

The China Association of Automobile Manufacturers (CAAM) reported that China's automobile exports last year reached approximately 5.859 million units, a 19.3% increase compared to the previous year, while electric vehicle exports decreased by 10.4% to 987,000 units. In contrast, hybrid vehicle exports surged by 190% to 297,000 units.

By type, exports of new energy vehicles such as electric, hybrid, and hydrogen vehicles increased by 6.7% to about 1.28 million units, while internal combustion engine vehicles, including gasoline and diesel, rose by 23.5% to approximately 4.574 million units. CAAM did not release detailed statistics segmented by types of internal combustion engines regarding export performance. By usage, passenger car exports increased by 19.7% to about 4.955 million units, and commercial vehicle exports rose by 17.5% to approximately 904,000 units. However, CAAM forecasts that unlike last year, China's automobile export growth will slow this year, reaching only a 5.8% increase to 6.2 million units.

China's domestic automobile market performed relatively well, supported by government subsidy programs, recording 31.4 million units, a 4.5% increase compared to the previous year. Among new car sales, new energy vehicles such as electric cars accounted for 11.582 million units, a 39.7% increase year-on-year, representing 45.3% of total new car sales. Last year, the Chinese government reportedly provided subsidies of up to $2,800 (approximately 4.12 million KRW) to buyers of more than 6.6 million new energy vehicles, and up to $2,000 (approximately 2.94 million KRW) to buyers of fuel-efficient internal combustion engine vehicles.

Meanwhile, the decline in popularity of internal combustion engine vehicles is impacting foreign companies that have long profited from the Chinese automobile market. In response, traditional automotive giants such as Volkswagen and Nissan are accelerating the development of electric vehicles targeted at the Chinese market, and recently Honda and Nissan announced merger plans to better compete with emerging Chinese electric vehicle manufacturers.

The Chinese government has decided to increase the intensity and scope of consumer goods trade-in support to expand domestic demand this year. A CAAM official explained, "The extension of subsidy support will be the greatest driving force for the growth of China's automobile industry," but also noted, "Weakening domestic demand, intensified competition, and increasing external pressures are expected to affect the overall automobile market."